Business
FG Plans More Taxes To Reduce Debt Burden
The collection of more taxes and effective blocking of revenue leakages remained the best measures that would drastically cut external borrowing and reduce the high debt burden of Nigeria, the Federal Government said, yesterday.
The government, however, said the debt burden was not beyond what it could effectively handle.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, represented by the Director (Technical Services), Fatima Hayatu, canvassed these views at a workshop on tax expenditure organised by the Economic Community of West African States Commission under the context of the Implementation of the Support Programme for Tax Transition in West Africa in Abuja.
The event was aimed at examining directives on harmonisation of tax expenditure management practices and the monitoring and evaluation of tax transition in ECOWAS member-states.
The minister said the issue of tax expenditure was of a great concern for the government.
The government had in July said the country’s debt service cost in the first quarter (Q1) 2022 was N1.94trillion, N310billion higher than the actual revenue received during the period indicating that Nigeria’s debt service cost presently outweighs its revenue.
Ahmed said, “If we have more taxes and redirect the taxes to the right fiscal sectors of our economy, we will reduce our debt burden. It is not as if the debt is beyond what the government can handle. If you look at the ratio of the debt to the Gross Domestic Product, I think the government is doing well.
“The debt is not something that cannot surmounted. The programme is to block leakages where the taxes are being diverted. So, if we block leakages, and if it is transparent, Nigeria will borrow less and we will have more money to finance other sectors.”
While informing that reforms in tax expenditure management were gaining traction in Nigeria, she observed that the development had resulted in the continuous development of in-house capabilities and internal restructuring in agencies for greater efficiency.
Ahmed also said that government would commence the rationalisation of tax exemptions by phasing out antiquated pioneers and other tax incentives for matured industries.
According to her, contrary to what was obtained in the past, the country is presently reaping the benefits of tax exemptions and concessions given to small businesses.
She said, “A lot has changed, the system is more transparent and tax expenditure that government has given which is tax for bond is to encourage ailing and infant industries to be able to do more and employ more youth.
“I am glad to say that the tax expenditure that federal government has been given has encouraged industries and manufacturers to stay afloat even with the COVID-19 pandemic and also to say that they have been able to keep their staff. That, to us, is an achievement because we don’t want people to loose their jobs which would reduce the insecurity we are facing.”
Ahmed said Nigeria was committed to strengthening transparency in its public financial management towards the drive to boost domestic resource mobilisation.
The Head (Corporations), European Union for Nigeria and ECOWAS, Cecile Tassin-Pelzer, lamented the ratio of tax to GDP in the West African region, describing it as low.
While stressing the need for ECOWAS member-states to effectively mobilise more taxes to offset the potential decline in revenues, she observed that domestic revenue is an important source of government expenditure funding, but revenue mobilisation remains a critical challenge in the region.
Tassin-Pelzer said, “The global economic challenges resulting from the COVID-19 pandemic and the invasion of Ukraine by Russia have affected economic opportunities of countries and individuals. West Africa is no exception. In fact, one can argue that the impacts of these challenges are felt even higher in this region than in so many others.
“Efficient management of internal taxation for improved revenue generation cannot be over emphasized. As we all know, the tax to GDP ratio in this region is too low and, and our host country, Nigeria, is one of the lowest in the world. Therefore, it is important for the region to get the tools required for a proper monitoring and evaluation of the taxes.”
The Director (Customs Union and Taxation), SalifouTiemtore, called on the Federal Inland Revenue Service to deploy adequate resources for collection of more tax than the custom administration in order to mitigate the loss of revenue due to stain of liberalisation of the region’s economy.
He said the PATF programme would strengthen regional fight against fraud, tax evasion, Illicit Financial Flows and other forms of corruption.
Tiemtore said, “We need to know what government is paying as incentives or any type of exemptions they are giving to investors. If assess and quantified properly, it will give us an idea what government could get as revenue if such activities are not exempted from tax.
“We are also looking at fiscal transition. In the world right now because we are dismantling custom tariff and also looking at the liberalisation of our economy. What this means is that we are dismantling custom tariff which automatically means a loss of revenue from custom tax. We need to strengthen our domestic tax administration so that we will able to collect more money. FIRS, therefore, have to collect more tax than the custom administration to mitigate the loss of revenue due to stain of liberalisation of our economy.”
MoniePoint Inc. a digital financial firm in Nigeria, has said it is empowering community pharmacists across the country with innovative payment solutions to improve access to drugs.
The financial firm said it had also provided loans for pharmacists under the aegis of the Association of Community Pharmacists of Nigeria (ACPN) to drive healthcare delivery in the country.
MoniePoint in a release titled, “Inside Nigeria’s community pharmacies: How Moniepoint drives healthcare access with payments and funding”, has reaffirmed its commitment to providing digital payment solutions to improve health outcomes in Nigeria.
The release examined how community pharmacies play a crucial role as vital access points for medical care in Nigeria, especially in areas with limited hospital or clinic access.
According to the release, the ACPN National Chairman, Ambrose Igwekwam, highlighted the critical role played by community pharmacies in Nigeria’s healthcare system over the years.
Igwekwam, however, expressed concerns over the challenges confronting the nation’s pharmaceutical industry which he said was hindering access to affordable medicines.
The pharmacist listed poor infrastructural systems, power, transportation, regulatory bottlenecks, importation dependency, and limited research opportunities as major challenges facing the pharmaceutical sector.
He also stressed the need for robust collaborative efforts with institutions like Moniepoint to strengthen the sector.
“As Nigeria continues to grow, improving local pharma manufacturing to meet the demands of this growth presents a key opportunity for us all.
“There is also the African Continental Free Trade Area Agreement, which is expected to boost our industry, especially when we start producing our drugs locally, which will provide the much needed foreign exchange from exports.
“We are also seeing advancements in digital health and technology which would hopefully deepen the practice of e-prescription in Nigeria”, the ACPN boss said.
Corlins Walter
In order to enhance customer service and streamline operations, the Chartered Insurance Institute of Nigeria (CIIN) has called on stakeholders in the insurance industry to embrace Artificial Intelligence (AI).
The President of the institute, Yetunde Ilori, made this call at the 2024 Office Representatives Committee (ORC) Workshop, organised by the institute, with the theme “AI and the Future of the Insurance Industry”, in Lagos.
Ilori at the event, emphasised the importance of AI adoption, noting that it was not a threat to jobs but rather a tool to improve efficiency across the insurance sector.
“It is not about AI taking over our jobs, but about us using AI to simplify processes and give maximum satisfaction to all the customers we serve whether as underwriters, brokers, loss adjusters, or in educating our members”, she said.
The workshop, which brought players in the insurance sector together, aimed to address how AI could be leveraged to transform business processes and improve customer interactions.
The Chairman of the ORC, Monica Nwachukwu, underscored the role of AI in modernising the industry, adding, “AI can automate customer and claims processes, allowing insurers to provide faster and more efficient services to their customers”.
She explained how AI could help extract data from legacy systems, enhancing decision-making processes.
“By integrating AI with APIs, insurers can feed valuable data into AI solutions to improve operations and customer service”, she added.
In his address, the Managing Partner of A4S and Training Heights, Orlando Odejide, stressed the need for companies to align their strategies with future technologies like AI, especially as they prepare for 2025.
“Any organisation that wants to grow into the future must have its strategic plan in place. If your strategy for 2025 is not ready, it should be done by October”, he advised.
He encouraged participants to think critically about how AI could be integrated into their business models to ensure they remain competitive.
“The idea is for you to use this workshop as a platform to think about your organization and how AI can help streamline your processes and improve growth”, Odejide noted.
In order to gain global respect and recognition, the National Space Research and Development Agency (NASRDA) has reaffirmed its determination to pursue its goal in ensuring that Nigeria’s space capabilities are recognised on the world stage.
The agency also reaffirmed its commitment to positioning Nigeria as a key player in the global space economy.
In a statement by the Director of Media and Corporate Communications, Dr. Felix Ale, NASRDA revealed that the Director-General of the agency, Matthew Adepoju, emphasised this during recent engagements at the 79th United Nations General Assembly and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Global Alliance Business Association international conference in Michigan, United States.
The statement noted that Adepoju outlined a forward-thinking agenda, stressing the importance of Nigeria’s space programme as a leader in research, exploration, and technological innovation.
“Our goal is to ensure that Nigeria’s space capabilities are recognised on the world stage.
“We must foster collaborations with global space agencies to enhance our satellite capabilities and technological infrastructure”, he stated.
The NASRDA boss said the agency is focusing on enhancing satellite capabilities, expanding international collaborations, and leveraging space science for national development.
He said NASRDA will have no stone unturned in pursuit of excellence, ensuring the agency secures the necessary resources and recognition to propel it forward.
“The relationships we build today will pave the way for tomorrow’s advancements in space science.
“Innovation and progress thrive in an environment built on collaboration and inclusivity”, he stated.
He emphasised that with the support of the government, international partners, and a dedicated team, NASRDA is poised to make significant strides in the evolving global space landscape.
“We are on the brink of a new era for Nigeria’s space agency. Together, we will ensure our nation stands out in the global space economy”, he said.
Corlins Walter